I purchased a support class REMIC security. Why isn it paying according to the schedule in the REMIC Offering Circular Supplement?
Payment schedules are based on prepayment rate assumptions, which do not reflect actual prepayments. Support classes, also referred to as companion classes, are designed to receive principal payments on any payment date only if scheduled payments have been made on the specified class that it supports. Support classes are more likely to be sensitive to mortgage prepayments rates because they support the principal stability of other classes in the REMIC. As a result, it is possible that you may not receive principal payments for extended periods of time and that the principal payments may change significantly from period to period.
